disiz64

Try using historical data in Portfolio Mgmt Pg 117-118 -Schweser. Enter the returns for both stocks in decimal, in other words, they way they have it listed.

Remember switch 2nd stat to LIN for 2 variables

You will get the Std Deviations (Calculator Sx for Stock A and Sy for Stock B), and r is the correlation coefficient. Covariance you have to calculate. IT WORKS!!

2nd Data
2nd Clr Work

2004 : X01:+.10 enter
Y01: +.20 enter

and so forth...once your done entering data

2nd stat 2nd set until you see LIN and press arrow done until you see the info you need!

Please post instructions for 2 variable probabilities if anyone can figure it out.

Also, does anyone know if this equates to Portfolio std dev and Portfolio Variance? Or do we need to still put in the data in that nasty formula and square it?



from a couple days ago...